Download Marketing # 2 Unit 5

Promotion: Marketing Mix 4Ps
It involves communicating with customers to let them know about the product and to
persuade them to buy it.
Promotional Mix
1. 1.
Advertising
=
4 ways to promote a product:
2. Sales Promotions
3. Public Relations
4. Personal Selling
Advertising:
It is the paid, non-personal (not face to face) communication of information about a product or
service through various media.
Types of Advertising:
1. 1.
Reminder Advertising – it helps to keep the product’s name in the consumers mind –
Coca Cola
2. 2.
am
Informative Advertising – it lets consumers know about the product – Sale starts at 10
3. 3.
Persuasive Advertising – it aims to convince consumers that they must have the
product – ads for most toiletries
4. 4.
Generic Advertising – it advertises the product of an entire industry rather than one
firm’s product – “Drink Milk” or “Buy Irish”
5. 5.
Competative Advertising – it aims to show that its product is much better than its
competitors – supermarkets show how much cheaper products are in its store compared to its
competitors
Functions of Advertising:
•
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To remind consumers that the product is still available
•

To provide information about the product
•

To persuade consumers to buy the product
•
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To offset competitors’ advertising – defensive advertising
•
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To increase sales and profits
Advertising Media:
Television
Radio Newspapers
Medium
Magazines
Billboards
Advantages
You can see the product working
– washing powders
Television
Big Viewing Audience
Direct Mail
Disadvantages
Very Costly
Many people switch channels as
soon as ads come on
Ads on during programs that
Target Market watch
Costs less than TV
It relies on sound only
Reach local people - Local
radio stations
Radio
Reach Target Market by ads on
radio stations that they listen to –
example i102 – i104 for 15 to
25 year olds
Newspapers
Provides detailed information
Picture quality not as good as TV
Costs a lot less than TV
Ad only seen for one day if in
daily papers
Reach Target Market by ads in
newspapers that they read
Reach local people by ads in
local papers
Provides detailed information
Colour pictures are of much
better quality than a newspaper
Magazines
Longer life than newspapers
Costs less than TV
Reach Target Market by ads in
mags that they read
Costs a lot less than TV
Billboards
Longer life than other media
Reach Target Market by ads in
Cannot give detailed information
sports venues that they frequent
Each billboard has only one ad
and so is not competing with
businesses
Direct Mail
Personalised ads using the
customer’s name + address
Reach Target Market
Expensive - printing + postage
Regarded as “Junk Mail” by
consumers
Only one ad - not competing with
other businesses
Selecting an Advertising Medium:
•

Media Habits of the Target Audience – ads for nappies on TV when parents are
watching
•

•
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The Message – car companies advertise in newspapers so that it can convey detailed
information about the car such as miles per gallon etc
•

Nature of the Product – if the product needs to be seen working then use TV
The Cost – the business should use the most effective media that it can afford
Advertising Standards Authority of Ireland = ASAI
It is a voluntary organisation set up by people in the advertising industry. It aims to protect consumers
from false, misleading and offensive advertising. It has no legal powers to force any advertiser to do
anything but because media are members of ASAI, they ensure that ads in breach of the code do not run
again. Any member of the public can complain to the ASAI in writing. It will investigate the complaint and
if in breach, it will ask the advertiser to take it down or change it.
Sales Promotions:
These are incentives (Gimmicks) that a business offers consumers to encourage them to buy
more of the product and to buy it sooner.
Techniques:
Free Samples Money-off Vouchers
Free Gifts
Competitions
Loyalty Cards
Merchandising
Merchandising means that the business displays its products in an attractive and eye catching way to
attract customers’ attention and get them to buy products they hadn’t intended buying.
Public Relations:
PR involves presenting a good image of the business and obtaining favourable publicity. Some
firms employ a PRO – Public Relations Officer.
Functions of PR:
•
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Attract Publicity when launching new products
•
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Target certain customers
•
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Build an image that reflects well on the company
•
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Defending products that have encountered bad publicity
PR Techniques:
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Events – exhibitions + open days
•
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News Conferences + Press Releases – creation of new jobs or launch of new products
•
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Public Service Activities – Tesco’s “Computers for Schools” – a voucher for every €10 of
purchases
•

Sponsorship – the business donates money to an event or a team
Personal Selling:
This is where a salesperson meets with customers face to face to give them information about a product and to
persuade them to buy it.
Example:
Computer Stores rely on personal selling by its sales people in its stores who give
customers expert knowledge and advice. Normally expensive products requiring after-sales service.
Place:
Marketing Mix 4Ps
If a business wants its product to be a success, it must be available in the right place for
customers to buy it. A business can distribute its products in various ways to reach its
customers – these are called Channels of Distribution
Traditional
Manufacturer
Alternative
Manufacturer
Wholesaler
Mail Order
Manufacturer
Direct Selling
Manufacturer
Wholesaler
Retailer
Retailer
Consumer
Consumer
Consumer
Consumer
Tin of Peas
Dunnes Stores
Clothes
Tesco
Dell Computers
Ryanair
Wholesaler:
A wholesaler is a business that buys products directly from the manufacturer in large quantities
and then sells them on to the retailer in smaller quantities.
Cash and Carry Wholesaler:
This is a modern trend in wholesaling. The retailer comes to the wholesaler’s premises, which is
like a supermarket for retailers. The retailer purchases and pays for the products at the checkout and provides his own transport.
Retailer:
A retailer is a shop that sells products to the consumer.